with sox shock wearing off, finance execs focus on management issues.<\/i><\/p>\n
by rick telberg<\/b>
\nat large <\/i><\/p>\n
cpas’ intensive focus on financial reporting and compliance issues that began with the enactment of the sarbanes-oxley accounting reform law of 2002, may be starting to share priorities with other pressing business matters ? improving organizational performance and staffing. <\/p>\n
cpas in all fields of the profession are three times more likely to be increasing their focus on organizational\/performance and staff recruitment\/retention than they are to be increasing their focus on compliance and governance, according to a bay street group study.<\/p>\n
while not downplaying the significance of financial reporting, cpas are facing the bitter reality of squeezing out profits with a reduced employment pool. “we’re all trying to do more with less,” says greg libertiny, president of a consulting firm in ridgewood, n.j.robert freeman, a senior executive with the erie indemnity co. insurance business in erie, pa., says that while reporting and internal control compliance are the biggest issues facing the profession at large, he’s increasing the priority on developing “a longer range focus.”<\/p>\n
management sub-sectors that are each twice more likely than governance to rate increases in prioritization include mergers and acquisitions planning, treasury operations, forecasting\/budgeting and cash management.<\/p>\n
john l. chase, a chief financial officer in business and industry in newport beach, calif., says the top issue facing all financial professionals is “identifying the most likely areas and industries for growth and contraction,” while jack l. henrie, president of a management consulting firm in suffield, conn., says that it’s “the same as it’s always been ? maximizing stakeholder wealth.”<\/p>\n
cpas’ shift from their intensive focus on compliance is partially due to the securities and exchange commission’s posture toward reducing the reporting requirements placed on smaller public companies, says a practitioner with a risk management consulting firm. for public companies of all sizes, the issue may be that they now better understand the new reporting and compliance framework, and are grappling with acquiring the manpower needed to meet those requirements. <\/p>\n
there’s “more demand for top talent and a much smaller pool available,” laments bill smith, chief financial officer with a 500-plus employee publishing company in savage, minn. he further notes that experienced analysts and staff accountants are demanding salaries that would cause “wage compression” within his company’s existing structure.<\/p>\n
terry nemec, chief financial officer with the kmwf & associates cpa firm in sioux falls, s.d., says staffing worries have made improving work\/life balance a top priority at his regional firm. the firm has added cable televisions at all offices and a policy for employees’ at-work viewing, hoping to “minimize the stress and frustration of (working) long hours and weekends,” he says.<\/p>\n
while paying attention to work\/life balance issues, firms and businesses may be giving short shrift to matters of greater concern to some workers. just 12 percent of cpas say they are increasing the priority given to pensions and benefits and 20 percent cite an increased emphasis on health insurance. by contrast, department organization and performance is getting increased priority from 57 percent; recruiting, training and retention from 53 percent; and compliance and governance from 16 percent.<\/p>\n
[first published by the aicpa.]<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"